Minimum Wage Requirements in Utah 2024

Overview of Utah's Minimum Wage Requirements

As of the start of 2024, the minimum wage in Utah is $7.25 per hour, which aligns with the federal minimum wage floor. This places Utah as one of the states with the lowest minimum wages, a position it has maintained since at least 2008. However, it's important to note that the actual wages being paid, particularly for entry-level positions, are often higher than the state's minimum wage.

This is especially true for the teenage workforce. As of early 2023, 16- and 17-year-olds were earning around $13.00 per hour on average, while 18 and 19-year-olds were earning an average wage of around $15.00 per hour. This increase in wages for teenagers is largely due to labor shortages and high demand, particularly in industries such as food services and retail trade, which heavily rely on teenage workers.

Understanding Local Minimum Wage Variations

The minimum wage in Utah is consistent across the state, including in Salt Lake County, Utah County, Weber County, Washington County, Salt Lake City, Provo, West Valley City, West Jordan, and Orem. In all these locations, the minimum wage is set at $7.25 per hour, which aligns with the Federal Minimum Wage rate.

However, starting January 1, 2025, the minimum wage in Utah County will be adjusted based on the age of the employee. Employees younger than 18 years old will earn $10.00 per hour, those aged 18 to 20 will earn $13.00 per hour, those aged 21 to 22 will earn $15.00 per hour, and those aged 23 or older will earn $19.00 per hour.

Minimum Wage Eligibility and Exemptions

In Utah, both private and public employees are eligible for the state minimum wage. However, there are several exemptions to this rule. For instance, employers can pay a minor a lower wage of $4.25 per hour during the first 90 days of their employment. Tipped employees, both adults and minors, may be paid a base wage of $2.13 per hour, provided that their tips, combined with the base wage, meet or exceed the minimum wage.

Other exemptions include employees entitled to a minimum wage under the Fair Labor Standards Act, outside salespersons, immediate family members of the employer, and companionship service providers for the elderly or infirm, among others.

Minimum Wage Considerations and Compliance Tips

As a food business employer in Utah, it's critical to understand the state's minimum wage laws and compliance considerations. The basic combined cash and tip minimum wage rate is $7.25 per hour. This means that employers can use up to $5.12 per hour of tips received by the employee to count towards their obligation to pay minimum wage, known as the maximum tip credit against minimum wage.

The Utah Payment of Wages Act outlines employers' responsibilities regarding paydays, final paychecks, electronic payroll deposits, lawful deductions, wage disputes, and payroll records. Employers are required to pay wages for all hours that an employee is working. In case of a dispute over wages, employees may file a wage claim with the Wage Claim Unit.

FAQs

• What is the current minimum wage in Utah? As of 2024, the minimum wage in Utah is $7.25 per hour.
• Are there any exemptions to the minimum wage in Utah? Yes, there are several exemptions including tipped employees, certain student workers, and other exempt occupations.
• What is the minimum wage for tipped employees in Utah? Tipped employees may be paid a base wage of $2.13 per hour, provided that their tips, combined with the base wage, meet or exceed the minimum wage.

Information Source Links

• National Conference of State Legislatures
• Utah Department of Workforce Services' Blog
• Utah Minimum Wage
• Federal Minimum Wage
• Utah Antidiscrimination and Labor Division (UALD) Wage Claim Unit

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